The British pound rallied against its major peers today after the UK government announced it would submit legislation on the triggering of Article 50 to parliament later this week. The British government announced through PM Theresa May‘s office that it would table the legislation before parliament on Thursday.
The British pound gained significantly against the US dollar, the euro and the Japanese yen after Reuters published the announcement made by Theresa May’s spokeswoman.
The rally by the sterling pound is part of a greater bullish trend that was triggered by the British PM’s speech outlining her 12-point Brexit plan on January 17. The markets seemed to disregard yesterday’s ruling by the UK Supreme Court, which requires PM May to seek the approval of parliament before invoking Article 50.
The pound’s bullish trend was also affected by the figures released by the Confederation of British Industry, which indicated that the UK’s manufacturing sector was performing above expectations. The CBI report also indicated that its headline quarterly business optimism index had risen to +15 in January from a low of -8 in October last year.
The pound’s future performance will be affected by the formal Brexit negotiations. Theresa May is also set to meet with US President Donald Trump on Friday, which might also affect the GBP/USD currency pair.
The GBP/USD was trading at 1.2603 as at 17:36 GMT, while the pair was trading at a low of 1.2493 before the announcement. The EUR/GBP was trading at 0.8511 at the time of writing, while it was trading at 0.8572 earlier.
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